Retail Sales Slide in May Amid Heightened Trade Tensions
Retail Sales Report
Retail sales slide in May amid escalating trade tensions, showcasing a 0.9% decrease from April. According to the Commerce Department, U.S. retail and food services totaled $715.4 billion, reflecting concerns from consumers and businesses alike.
Tariff Impact
Sales of motor vehicles and auto parts were down 3.5% month over month, heavily influenced by President Trump's tariffs. Threats of additional tariffs on autos continue to create uncertainty.
Consumer Spending Habits
- Food and beverage sales slid 0.7%.
- Gas station purchases decreased by 2%.
- Electronics and appliances fell 0.6%.
Despite overall declines, spending on domestic goods showed promise, with home furnishing purchases up 1.2% and hobbies boosting by 1.3%.
Future Projections
Analysts, including Oren Klachkin from Nationwide Financial Markets, project a dim outlook for Q3 as prices rise due to tariffs, while Lydia Boussour emphasizes potential consumer demand softness extending into summer and beyond.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.